As the morning of Thursday, March 18, 2021, unfolds, gold prices slip from $1,750 per ounce to about $1,720 with jobless claims rising and various economic sectors hanging in the balance; the nation continues to cautiously reopen in the wake of the COVID-19 pandemic. Meanwhile, as the $1.9 trillion stimulus plan unfolds with most Americans receiving – or about to receive – checks, President Joe Biden is on track to raise taxes for the first time since 1993. These tax hikes would primarily affect those earning over $400,000 per year as well as estate and capital gains taxes. But what might this mean for gold prices?
While this means households and corporations on the higher end of the income spectrum will be netting less, those in the lower income brackets could see increased earnings and are likely to spend more of that increased income. This, in turn, could boost various economic sectors and, thus, put upward pressure on gold, silver, and other resources.
Of course, that’s just one possibility of myriad potential outcomes; nobody can foretell exactly how the market will react to this particular tax hike, which isn’t certain and also may not transpire for some time to come. Those who are looking to invest in precious metals should stick to the tried-and-true assets, including pre-1933 United States gold coins, pre-1965 90% silver coinage, vintage world gold and silver coins, American Eagle bullion coins, and international bullion coinage.